Montana 2025 Regular Session

Montana House Bill HB933

Introduced
3/31/25  
Refer
3/31/25  

Caption

Establish the Montana railroad crossing clarity act

Summary

HB 933 creates the “Montana Railroad Crossing Clarity Act,” a detailed framework governing how utilities may cross, place, repair, or maintain facilities within railroad rights-of-way and adjacent railroad land. It defines key terms such as utility, railroad land, crossing, crossing fee, annual fee, and disused rail crossing, and it preserves a utility’s existing eminent-domain authority while making clear that utilities are not required to use this new process. The bill requires advance notice, a completed application, a site drawing, insurance documentation, and payment of specified fees before construction can begin, unless the parties resolve the matter differently or a dispute is sent to arbitration. The bill also sets limits on what railroads may charge and what conditions they may impose. It caps one-time crossing fees, restricts annual fees, bars many additional license, permit, processing, or safety-related charges beyond those expressly allowed, and limits when fees may be imposed for upgrades, disused crossings, or railroad-requested service extensions. It establishes insurance minimums for different types of utilities, allows railroads to require limited protective liability coverage, and provides rules for relocation, assignment of crossing rights, restoration of disturbed property, tax allocation, and a prohibition on mechanic’s liens against either party’s property. It also requires annual reporting to the Department of Transportation and a filing fee tied to the crossing fee, with the revenue directed to the local road and bridge account. The bill’s impact on state law would be significant for utility-railroad crossing disputes because it would add a comprehensive statutory process to Title 69, chapter 14, governing access, fees, insurance, objections, and arbitration. It would standardize the terms under which utilities can place infrastructure across railroad property and limit railroad discretion in setting fees or imposing extra conditions. It would also create new administrative reporting obligations and a state filing fee for completed crossings, while expressly applying to crossings already in existence before October 1, 2025, as well as crossings commenced after September 30, 2025. The general sentiment reflected in the voting history appears mixed but procedurally favorable at first and then unsuccessful overall. The bill received a 9-5 do-pass recommendation in the House Transportation Committee and then passed the House on second reading by a 99-0 vote, suggesting broad support or at least no recorded floor opposition at that stage. Despite that, the bill ultimately died in process, indicating it did not complete the legislative path. No committee transcripts were provided, so there is no direct record here of floor debate or stakeholder testimony. The main points of contention likely center on the balance of power between utilities and railroads. The bill favors utilities by capping fees, limiting annual increases, restricting additional railroad charges, and allowing arbitration when railroads object or demand relocation. Railroads may object to the bill’s constraints on their ability to recover costs, protect operations, and negotiate terms for crossings on their property. Utilities and infrastructure providers, by contrast, would likely support the bill as a way to reduce uncertainty, prevent fee escalation, and create a clearer statewide process for obtaining crossing rights.

Impact

HB 933 would add a new statutory scheme to Montana law governing utility crossings of railroad rights-of-way and adjacent railroad land, codified within Title 69, chapter 14. It would regulate applications, notice, fees, insurance, objections, relocation, assignment, liens, taxes, reporting, and arbitration, while limiting railroad authority to impose additional charges or conditions beyond those expressly authorized. The bill would affect utilities, railroads, contractors, insurers, and the Department of Transportation, and it would apply to both existing crossings and new crossings commenced after September 30, 2025.

Sentiment

The available voting history suggests the bill had meaningful support, at least in the House Transportation Committee and on the House floor, where it advanced 9-5 in committee and then passed second reading 99-0. However, the bill ultimately died in process, so that support was not enough to enact it. With no transcripts provided, the record does not show detailed debate, but the structure of the bill indicates a likely split between supporters seeking clearer utility access rules and opponents concerned about railroad property rights and revenue.

Contention

The central contention is the allocation of rights and costs between utilities and railroads. The bill limits crossing fees, annual fees, flagging charges, safety inspection charges, and other railroad-imposed costs, which railroads may view as insufficient compensation for use of their property and operational burdens. It also allows utilities to challenge railroad objections and relocation demands through arbitration, which may be seen as reducing railroad control over safety and operational decisions. Supporters are likely utilities, municipalities, cooperatives, and infrastructure providers seeking predictable access and lower transaction costs, while railroads are the primary likely opponents because the bill constrains their pricing and approval discretion.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.